US/JERSEY - State Street has entered into an agreement to acquire Jersey-based fund administrator Mourant International Finance Administration in a move the firm claimed will make it the largest alternatives asset servicing company in the world.
State Street said the deal is expected to close in the first quarter of 2010 but officials declined to release the terms of the deal.
State Street said the acquisition will also make it the largest private equity servicing company and biggest real estate asset servicing company globally. Once the deal closes, State Street will also become the second largest hedge fund servicer in the world.
State Street president and chief operating officer Jay Hooley said: "This acquisition will bring a wider and more comprehensive product offering to our existing and new customers and further develop our servicing footprint in Europe and Asia where expanded capabilities, including enhanced real estate servicing, better enable us to offer customers a full breadth of solutions for all of their business needs."
Mourant chief executive officer Nicola Palios said: "Today's announcement will allow MIFA to advance its position in the alternative administration segment of the global fund administration business, broaden its service capabilities and expand to even more markets than before through State Street's global footprint."
Mourant has US$170bn in assets under administration mainly for alternative assets. State Street has $420bn in alternative assets under administration.
State Street has grown its administration business through acquisitions in the past. In 2002, the company acquired International Fund Services and in 2007, it acquired Investors Financial Services and Palmeri Fund Administrators.
Separately, State Street said it was hired by Morgan Stanley Investment Management to provide investment manager operations outsourcing services to some $300bn in assets.
Under this mandate, State Street will provide trade settlements, portfolio administration and reporting and reconciliation services.
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